Witnesses at a House subcommittee hearing on the reverse mortgage program called for improved servicer oversight, mandatory loss mitigation for new HECMs and a new risk rating system.
The Senate Appropriations Committee has directed HUD to review Ginnie Mae’s overwhelming reliance on outside contractors to perform key func-tions, including oversight, risk management and compliance.
The bank has managed to sell all securities received as collateral for a ware-house line of credit to now-defunct reverse-mortgage lender Live Well Financial.
Senate Appropriations Committee has asked HUD to ensure transparency and improve the resolution of defaulted and foreclosed HECMs and to better manage the sale of troubled taxpayer assets.
The trade group has urged Ginnie Mae to treat issuer stress testing as just “one tool among many,” in which results serve as the basis for further analysis and engagement rather than as a driver for enforcement.
FHA has updated its HECM rule, which allows lenders to offer surviving spouses of deceased borrowers the option of deferring payments and assigning the loan.